ABHISHEK GHOSH

What's New?

SPEEDY Railway Book (English)

NABARD - National Bank for Agriculture and Rural Development

NABARD - National Bank for Agriculture and Rural Development for IBPS PO, IBPS CLERK, INSURANCE EXAMS, RRB EXAM, SBI PO, SBI CLERK

NATIONAL BANK FOR AGRICULTURE & RURAL DEVELOPMENT (NABARD)

Essential for All Upcoming Bank Exams
Introduction:
National Bank for Agriculture and Rural Development (NABARD) was established on 12th July, 1982 by the Government of India to act as agency for promoting integrated rural development and to provide all sorts of production and investment credit for agriculture and rural development.



Functions of NABARD:

  • NABARD can also provide medium-term loans (for a period between 1.5 years and 7 years) to the SCBs and RRBs for agriculture and rural development. 
  • The NABARD is essentially a development bank for promoting agriculture and rural development. Its main function is to provide refinance and credit to the Regional Rural Banks, State Co-operative Banks and other Financial Institutions. 
NABARD provides refinance assistance to these institutions for granting loans for the following purpose – 
  • For marketing of agriculture purpose. 
  • For marketing and production activities of rural craftsman small scale industries in the village and cottage industries, tiny and decentralized sector, handicrafts and other rural crafts. 
  • For agriculture operation. 
  • For allied activities important for agricultural and rural development. 
  • NABARD is empowered to give short term as well as long term loans in a company’s form. It can also make loans and advances to state governments for a maximum period of 20 years in order to enable them to subscribe directly or indirectly to the share capital of Co- operative credit societies. 
Some of the important policy initiatives in the agriculture and rural sector taken by NABARD is as follows –
  • Lowering of interest rates on refinance. 
  • Introduction of Kissan Credit Card
  • Giving special thrust on micro credit development. 
  • Augmenting flow of credit in the areas served by weaker Co-operative banks. 
  • Stimulating investment in minor irrigation and wasteland development. 
  • Accelerating flow of credit to the handloom weavers through financing state Handloom Development Corporations. 
In 1988 onward, the NABARD introduced certain policy changes and schemes regarding farm short-term credit – 
  • National Oilseeds Development Programme (NODP) 
  • The scheme of fresh finance. 
  • Financing of seasonal agricultural operation. 
  • Product marketing loan scheme. 
NABARD initiated some policy for non-farm sector is as follows – 
  • Liberalizing the Small Road Transport Operators (SRTO) scheme. 
  • Enlarging the scope of soft loan assistance for margin money scheme. 
  • Enhancing the ceiling under Automatic Refinance Facility (ARF) and Integrated Loan Schemes (ILS).
banner
Join Your Competitor in FB Groups
Join Your Competitor in Telegram Groups
Study Materials and Important Notifications
Latest Govt. Schemes Monthly PDF Download
Newsletters Form

  • Comments
  • Google+
  • Disqus